According to a recent report published by The Economic Times, the Indian government is reconsidering its stance on Bitcoin and cryptocurrency trading. Authorities believe that the crypto recommendations by India’s former finance secretary Subhash Garg are outdated. Earlier, there were reports suggesting India might be planning to ban cryptocurrencies in the country completely and even make holding crypto a punishable crime. However, the government is planning to form a new panel to study crypto regulations.
The new group will explore a regulatory framework for cryptocurrencies.
The new committee will explore possibilities about the usage of blockchain technology in different sectors along with a potential regulatory framework for Bitcoin and other digital assets. “There is a view within the government that the recommendations made by the Subhash Garg are dated, and a fresh look is needed at the use of cryptos rather than a total ban,” an official familiar with the matter told The Economic Times. According to the report, the Indian government is planning to treat Bitcoin and other cryptocurrencies as digital assets.
Indian crypto community fights uncertainty.
The recent report about the new committee and crypto regulations in India came after months of speculations and uncertainty among the Indian crypto community. During the latest conversation at the India Today Conclave South, Nirmala Sitharaman, Finance Minister of India, said that the country is not planning to shut all crypto-related operations. “We will allow a certain amount of window for people to experiment on blockchain and bitcoin.” The finance minister also added that the Supreme Court had commented on cryptocurrency, and while the RBI may take a call on official cryptocurrency, from our side, we are very clear that we are not shutting off all options.